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Hold the phone. Next time you call 911, you could be on hold for quite some time. That's because 10 states, including New York, have diverted some of the money they collect for 911 services to help close yawning budget gaps.

According to the most recent data from the Federal Communications Commission, transfers of money from 911 funds to general-purpose budgets doubled in 2009. The transfers ranged from $2.4 million in California to $30.5 million in Illinois in 2009. The 911 accounts generally are funded via phone-service providers, who charge customers for the service.

On Hold: 10 states used some of their 911 surcharges to close budget gaps. In some places, hold times keep rising.
William Waitzman for Barron's

Generally, state legislatures permit such diversions. But states that divert funds can't receive federal grants to improve their 911 systems. Indeed, Arizona returned some $1.3 million it obtained in September 2009 from a federal grant to update 911 technology, after it acknowledged it had diverted some 911 funds it collected in surcharges.

Closing budget gaps wasn't the only way states used the funds. The Post-Standard of Syracuse, N.Y., reported in 2008 that some of the $1.20 a month New York collected in 2007 for 911 went to dry cleaning and tie bars. The state's budget office acknowledges that 50 cents of every $1.20 collected goes to the general fund, which helps to finance public-safety initiatives.

Some states report hold-times for 911 calls of as long as 20 minutes, something Reid French, vice chairman of the 9-1-1 Industry Alliance, calls "unacceptable." The waits are even more troubling given the technology is potentially more useful in crises than it has been in decades, since it now permits users to text to 911, and lets 911 operators automatically identify a caller's location, says Dave Rutan, CEO of Cassidian Communications.

Last Week: Review

Greek Tragedy

A standoff appeared to be developing over funding of Greece's huge debt bill, with Eurogroup President Jean-Claude Juncker saying the euro-zone country might be denied the next tranche of financial aid from the International Monetary Fund if its budget shows it can't guarantee financing for the next 12 months. The European Central Bank, the IMF and Germany were composing opposing solutions to the crisis, as the IMF, ECB and European Commission complete a review of Greece's finances. Greek leaders failed to reach a consensus.

You Call That Growth?

Growth in U.S. gross domestic product went unrevised in the first quarter, holding at an inflation-adjusted rate of just the 1.8% initially estimated, the U.S. said. Weekly new unemployment claims rose.

Optimism Gaining Strength

Leaders of the Group of Eight said the recovering global economy will help reduce debts accumulated during the recession that followed the 2008 financial crisis. Europe said it would address its debt situation with "determination," and President Barack Obama promised a "clear and credible" deficit-reduction strategy. The countries pledged $40 billion to help Arab countries.

Mixed Signals

Pending U.S. home sales, which track signed contracts on single-family homes, condos and co-ops, plunged an unexpected 11.6% in April. But new-home sales rose 7.3% in the month. Average rates on fixed-rate mortgages fell to 4.6%, their lowest so far this year.

Eye on Pakistan

Secretary of State Hillary Clinton told Pakistani leaders to take "decisive action" against extremists. Earlier, Pakistan said China will assume operation of a strategic port.

In Brief

• Tornados killed 126 in the Midwest; 232 people were unaccounted for.

• Former Bosnian General Ratko Mladic arrested on genocide charges.

• France's finance minister declared her candidacy for the IMF.

• Hedge-fund manager David Einhorn agreed to pay $200 million for a minority stake in the N.Y. Mets.